Weekly forecast for USD/JPY

March 26, 2007 - March 30, 2007

View on USD/JPY: the triangle applies

GFSignals team provides a week forecast for USD/JPY

Last week our first script was fulfilled: "Side exchange fluctuations within the three-cornered 116.10-118.40 area" (50%). Though the bottom margin wasn't achieved, the course kept to the upper margin. Now decline/rebound to the bottom margin area is to be expected.

Script 1 (50%): Side exchange fluctuations within the three-cornered 116.60-118.30 area.
Current correction may remain in the bounds of the triangle. The break out of the limits will lead to the next two scripts.

Script 2 (30%): A downward trend to 113.00-114.00 area.
A bottom triangle line break down at 116.60 is necessary for this script. After that, firstly a potential downward target 114.40, the December, 2006 minimum area, will be achieved. That will lead to a deeper decline in the future, while to the 113.00 level area, triangle workout target.

Script 3 (20%): An upward trend to 121.00.
It must not be ruled out this script, because an upside break out of the triangle may occur (the upper limit is 118.30). But, after such an upward trend to the 120-121 area a following downward trend to the March minimums is expected.

Resistances
118.30/50 - the last two weeks resistances (upper triangle bound).
119.00/119.90 - the broken February support area.
121.60/122.20 - February resistance.
122.20 - January, 2007 maximum - yearly resistance.

Supports
116.60 - bottom triangle line.
115.20 - March, 2007 yearly minimum.
114.40 - December, 2006 minimum.
113.00 - supported nearest fall target.